Shares in two of China‘s largest online gaming companies fell following the rating Investors are increasingly concerned about Beijing‘s crackdown on the companies.
Shares in two of China’s biggest online gaming companies fell after a state media outlet called them “electronic drugs”. Shares in Tencent and NetEase fell more than 10 per cent in early Hong Kong trading before recovering some of those losses.
Investors are increasingly concerned about Beijing’s crackdown on companies. In recent months, the authorities have announced a series of measures to tighten their control over technology and private education companies.
An article published by the state-run Economic Information Daily claimed that many teenagers had become addicted to online games and this was affecting them negatively. The news outlet is affiliated with the official Xinhua news agency. The article cited Tencent’s hugely popular game Honor of Kings, saying students were playing it for up to eight hours a day and called for more restrictions on the industry.